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Format of the treaty on common electric power market of the Union agreed at the level of EAEU countries’ Deputy Ministers of Energy

Format of the treaty on common electric power market of the Union agreed at the level of EAEU countries’ Deputy Ministers of Energy

5/16/2018

The format of international treaty on common electric power market (CEPM) of the Eurasian Economic Union (EAEU) and its unsettled provisions were discussed by Deputy Heads of authorized authorities of the EAEU States in the sphere of power engineering. Their consultation chaired by the Member of the Board - Minister in charge of Energy and Infrastructure of the Eurasian Economic Commission (EEC) Emil Kaikiyev took place at the Commission’s venue.
 
Following the consultation’s results the parties agreed that international treaty on common electric power market would be adopted in the form of amendments to the current Treaty on the EAEU, specifically to Annex No. 21 thereto. Thus, it is supposed that all the primary arrangements on the market will be contained in the Treaty on the EAEU, which complies with structural logics of the main document of the Union.
 
A number of arrangements were also reached under separate previously unsettled amendments to the Treaty on the EAEU governing establishment of the CEPM of the Union, in particular, as regards relations with third States. Thus, it was determined that interstate transmission of electric power (capacity) for the purpose of fulfilling obligations with regard to electric power industry entities of third States will be governed by legislation of the EAEU participating country, through which territory such transmission is carried out.
 
Moreover, a decision was adopted to provide for concurrent entry into force of all the rules of operation of common electric power market of the Union, with the relevant instruction being stipulated in the decision of the EEC Council. Pursuant to such decision, the treaty on common electric power market will be sent to Member States in order to accomplish procedures necessary for its signing.
 
At the same time, the parties will continue discussing certain provisions concerning the definitions of “common electric power market” and “interstate transmission of electric power” as well as division of vertically integrated structures. These issues are planned to be considered at one of the meetings of the EEC Board.
 

Furthermore, Deputy Heads of energy authorities discussed a number of issues related to the preparation of the rules of the Union’s CEPM operation. They include opportunities to get access to the services of natural monopoly entities in the sphere of electric power industry through a commercial agent (authorized organization), accounting currency and universal time (Greenwich or Moscow Time) upon determination of the terms for performance of actions in the course of centralized trade in electric power on the common electric power market of the EAEU. They also discussed the definition of domestic needs for electric power of the Union Member States. The parties agreed to get back to the discussion of such issues after subject-matter experts make additional assessment of consequences of some or other decisions.